The implementation of Multiprotocol Label Switching (MPLS) managed service will help SSC deliver on its mandate to improve the efficiency, reliability and security of the government's IT infrastructure. It will connect up to 850 sites across the country, with the flexibility and intelligence of IP routing and the transport quality of a single, high performance network. By implementing an IP-based solution, voice, data and multimedia applications can be converged onto a single private network, simplifying the ability for network development and providing a higher overall return on infrastructure investment. This, combined with the benefits of a switched ethernet solution, will allow smooth and dependable sharing of information and applications across multiple LANs, further increasing SSC's productivity.

'We have a long history of working with the federal government and will now have an even bigger role in creating greater efficiency in their network environment,' said Dean Prevost, President of Allstream. 'We're very pleased that our solutions fit the government's objective of efficiently using technology to increase productivity.'
Manitoba Telecom Services Inc.

MTS Allstream is one of Canada's leading national communication solutions companies, providing innovative communications for the way Canadians live and work today. The company has more than 100 years of experience, with 5,500 employees across Canada. MTS Allstream's business is dynamic and consists of two operating divisions. In Manitoba, MTS is the leading full-service telecommunications provider for residential and business customers. MTS's suite of services include the latest in wireless technology, broadband services, IPTV, voice services, home security, and an extensive range of business solutions. Across Canada, Allstream is a leader in IP communications and is the only national provider that focuses exclusively on the business telecommunications market. MTS Allstream has nearly two million customer connections spanning business customers across Canada and residential consumers throughout the province of Manitoba. The company's extensive national fibre optic network spans more than 30,000 kilometres. MTS Allstream has spent 11 consecutive years on the Jantzi Social Index for leadership in social responsibility and is the recipient of the 2011 Governance Gavel Award from the Canadian Coalition for Good Governance, recognizing clear and effective public disclosure and leading governance practices. MTS Allstream's common shares are listed on the TSX (trading symbol: MBT). Customers, stakeholders and investors who want to learn more about MTS Allstream are encouraged to visit: www.mtsallstream.com. For more information about MTS's products and services, please visit www.mts.ca. For more information about Allstream's products and services, please visit www.allstream.com.

Forward-looking Statements Disclaimer
This news release includes forward-looking statements and information (collectively, the 'statements') about the Company's corporate direction, business opportunities, operations, financial objectives and future financial results and performance that are subject to risks, uncertainties and assumptions. As a consequence, actual results in the future may differ materially from any conclusion, forecast or projection in such forward-looking statements. Therefore, forward-looking statements should be considered carefully and undue reliance should not be placed on them. Examples of statements that constitute forward-looking information may be identified by words such as 'believe', 'expect', 'project', 'should', 'anticipate', 'could', 'target', 'forecast', 'intend', 'plan', 'outlook', 'see', 'set', 'pending', and other similar terms.

Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters identified in the 'Material assumptions' section below, the 'Risks and uncertainties' section, elsewhere in the Company's 2011 Annual MD&A and 2011 Annual Information Form, all of which are available on SEDAR at www.sedar.com.

Please note that forward-looking statements reflect Management's expectations as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

For further information:
Media:
Jessica Poitras
Corporate Communications
204-941-7823
media.relations@mtsallstream.com
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